Avocet Mining Share Discussion Threads

[buywell2] 16/3/2013 10:51

The acquisition of WEGA mining has screwed the AVM pooch but good , ask bionic



Why did the ex boss of WEGA sell his AVM shares just months after he got them from the sale at over 200p ?

[p@] 16/3/2013 10:31

Polaris-Thanks for your accurate summaries,must have saved many punters from the last spreadbet tip (including me).Wonder if they knew what is coming?

[corrientes] 16/3/2013 10:15

Sorry for shareholders, but I hope that bunch of sinecured directors get their P45's without any compensation ; wishful thinking.

[ninja 19] 15/3/2013 21:28

They said placing was coming anyway so I will take their words on it. 8M will not run for 3-4 Months

My Target is 0.37p

[polaris] 15/3/2013 20:02

ugly UT crossing trade at the end of the day. Placing anyone?

[lukeisbackontrack] 15/3/2013 19:13

Is there a bouncy bouncy yet?

[p@] 15/3/2013 16:59

Maybe spreadbets has got out of a position?

6.6mil volume trade gone thro.

[robhammers] 15/3/2013 16:49

tried buying last minute. didnt let me.

[pete_bain] 15/3/2013 16:38

what happened ? I considered investing here again but decided to wait....thankfully. Does anybody know what is the reason for the drop?

[lukeisbackontrack] 12/3/2013 15:42

RNS Number : 8207Z

Avocet Mining PLC

12 March 2013

NOTIFICATION OF INTEREST IN TOTAL VOTING RIGHTS

A form TR-1 containing the following information has been received by the Company.

TR-1 notification of major interests in shares

1. Identity of the issuer or the underlying issuer of existing shares to which voting rights are attached:

Avocet Mining PLC

2. Reason for the notification

An acquisition or disposal of voting rights

3. Full name of person(s) subject to the notification obligation:

UBS Investment Bank

4. Full name of shareholder(s) (if different from 3):

UBS AG London Branch

5. Date of the transaction (and date on which the threshold

is crossed or reached if different):

8(th) March 2013

6. Date on which issuer notified:

12(th) March 2013

7. Threshold(s) that is/are crossed or reached:

11%

8. Notified details:

A: Voting rights attached to shares


Class/type Situation previous Resulting situation after the triggering
of shares to the Triggering transaction
if possible transaction
using the
ISIN CODE
---------------- ---------------------------- -------------------------------------------------------------
Number Number Number Number of voting % of voting
of Shares of Voting of shares rights rights
Rights
---------------- ------------- ------------- ------------- ------------------------ --------------------
Direct Direct Indirect Direct Indirect
---------------- ------------- ------------- ------------- ------------- --------- --------- ---------

GB0000663038 21,494,503 21,494,503 23,043,809 23,043,809 - 11.58% -
---------------- ------------- ------------- ------------- ------------- --------- --------- ---------

B: Financial Instruments


Resulting situation after the triggering transaction
-----------------------------------------------------------------------------------------
Type of financial Expiration Exercise/ Conversion Number of voting % of voting
instrument date Period/ Date rights that may rights
be acquired if
the instrument
is exercised/
converted.
------------------ ----------- --------------------- ------------------- ------------
N/A N/A N/A N/A N/A
------------------ ----------- --------------------- ------------------- ------------
C:Financial Instruments with similar economic effect to Qualifying
Financial Instruments
Resulting situation after the triggering transaction
-----------------------------------------------------------------------------------------
Type of financial Expiration Exercise/ Conversion Number of voting % of voting
instrument date Period/ Date rights instrument rights
refers to:
------------------ ----------- --------------------- ------------------- ------------
N/A N/A N/A N/A N/A
------------------ ----------- --------------------- ------------------- ------------

Total (A+B+C)


Number of voting rights % of voting rights
------------------------ -------------------

23,043,809 11.58%
------------------------ -------------------

9. Chain of controlled undertakings through which the voting rights and/or the financial instruments are effectively held, if applicable:

Proxy Voting:

10. Name of the Proxy holder:

11. Number of voting rights proxy holder will cease to hold:

n/a

12. Date on which proxy holder cease to hold voting rights:

n/a

13. Additional information:

Contact Name: Konstantina Georgaki / Zuzana Görögová
Telephone Number: [phone]
This information is provided by RNS

The company news service from the London Stock Exchange

END

[lukeisbackontrack] 12/3/2013 07:18

RNS Number : 7431Z

Avocet Mining PLC

12 March 2013

Avocet Mining PLC - employee share options

Avocet Mining PLC ('Avocet' or 'the Company') announces the award of a total of 3,330,000 options over ordinary shares of 5 pence in the Company ('Options') to employees on 8 March 2013 ('the Grant Date'). These Options have an exercise price of 23.5 pence. No options were awarded to Persons Discharging Managerial Responsibility.

Of these awards, 2,370,000 share options are not normally exercisable before 8 March 2016, the third anniversary of the Grant Date. In addition to the normal scheme rules, these options have an additional performance criterion in order to be fully exercisable, namely that the 30-day volume-weighted average price ('VWAP') for Avocet shares must exceed 80 pence in the period between the Grant Date and the 8 March 2016 (the 'Service Period'). If the maximum 30-day VWAP during the Service Period is between 40 pence and 80 pence, the number of options which become exercisable will be a pro rata scale between 25% of the number of options awarded (for 40 pence) and 100% of the options awarded (for 80 pence). If the maximum 30-day VWAP during the Service Period does not reach 40 pence, no options will be exercisable.

The remaining 960,000 share options will become immediately exercisable, if the Avocet VWAP share price reaches 80 pence at any time between the Grant Date and 31 December 2015. If the VWAP share price between Grant Date and 31 December 2015 reaches between 40 pence and 80 pence, the number of options which become exercisable at that time will be a pro rata scale between 25% of the number of options awarded (for 40 pence) and 100% of the options awarded (for 80 pence). If the maximum 30-day VWAP between Grant Date and 31 December 2015 does not reach 40 pence, no options will be exercisable. Any of these 960,000 options will lapse, if unexercised, by 31 December 2015.

[lukeisbackontrack] 10/3/2013 23:24

Dead cat bounce on its way? I guess that's good timing

[polaris] 08/3/2013 11:06

bushtuckman - LOL.

I remember that all too well. I think your opening the door on a Burkina fiasco is also close to the mark.

All holders can do is watch and pray that MBL and AVM can come to a suitable agreement, otherwise it will get very messy. That $8m they had left in free cash will be used by now for cap-ex, general and admin and exploration so AVM are caught between a rock and a hard place. They have almost $40m in cash, but they cannot use it. Cutting back on exploration and cap-ex hurt the business going forward. Lowered production and the hedge have destroyed the necessary cashflow and the Inata reserve restatement has pushed them to the edge in terms of technical breach of covenants for the loan and hedge.

Once again i will state for the record that all of this could have been avoided when AVM bought WEGA. They could have locked the price and negated the hedge for around $20m, locking in value. Awful, awful decision by the then board!

regards,

Paul

[bushtuckaman] 08/3/2013 10:53

GS, your post reminded me of a conversation some of the regulars had on one of the old AVM threads many moons ago, when discussing possible new thread titles! ;-)





Giant Steps
29 Jun'09 - 09:24 - 2235 of 2922 0 0


Avocet Mining - Focused on Gold Mining





polaris
29 Jun'09 - 12:54 - 2236 of 2922 0 0


Avocet Mining - A new Beginning?
Avocet Mining - realising the potential
Avocet mining - Expansion into Africa





wolstencroft
30 Jun'09 - 07:52 - 2237 of 2922 0 0


Avocet - Digging themselves out of a hole







A.Fewbob
30 Jun'09 - 08:09 - 2238 of 2922 0 0


lol





DoobyDave
30 Jun'09 - 08:36 - 2239 of 2922 0 0


That's the trouble - I can think of plenty of facetious ones.

Avocet - must do better
Avocet - room for improvement
Avocet - Mr Bean's world tour continues

Etc!

I'll let it hang a day or two longer, but thanks for the suggestions so far.







bushtuckaman
30 Jun'09 - 09:46 - 2240 of 2922 0 0 edit


Lol wolsten,DD

How about

Avocet - African Adventurers
Avocet Mining - Inata or Bust
Avocet Mining - Opening the door on a Burkina Fiasco





polaris
30 Jun'09 - 10:12 - 2241 of 2922 0 0


bushtuckman, DD, Wolstencroft - LOL

I was trying to be serious! ;-) I really like the last suggestion from bushtuckman!

Wolstencroft
Surely it should be AVM - digging themselves into a hole in that case? ;-)

A few others:
AVM - a hedge too far
AVM - going underground (though thats for the future if/when Penjom goes there)







Clearly the title should have been a Paul's "AVM - A Hedge Too Far" ;-)

[pecker1] 07/3/2013 19:06

The danger of the hedge that several of us saw years ago is now very real. The former Chairman , his geriatric board of has-beens and JH really have set in train the destruction of what could have been a successful mining company through utter crass incompetence, rank stupidity and an unwarranted arrogance that made them impervious to reason.

The arguments against "hedging" and the potentially unlimited liability it meant taking on were clearly spelt out at the time on this thread by Paul, myself and others.

Yet another scalp to that nasty bunch Macquarie and given the hopeless managements of many mining companies it certainly won't be the last.

[polaris] 07/3/2013 18:21

Dear all,

This is the only part of the annual results that is of importance going forward and it does make for pretty reading (see below). MBL have AVM over a barrel and can call in the hedge if they want as AVM are in technical breach of the debt covenants after restating the reserves at Inata. Whatever they come up with will be painful for current shareholders and i will continue to avoid.

regards,

Paul

From annual report
Going concern
At 31 December 2012, the Group held cash and cash equivalents of US$54.9 million, of which US$46.9 million was held by Société des Mines de Bélahouro SA ("SMB"), the operating entity which owns the Inata gold mine. US$38.4 million of
SMB's cash balance was restricted for use by SMB, of which US$37.0 million represents a minimum balance held with Macquarie Bank Limited ("MBL") and US$1.4 million (2011: $0.6 million) relates to amounts held on restricted deposit in Burkina Faso for the purposes of environmental rehabilitation work, as required by the terms of the Inata mining licence.

The transfer out of SMB of funds above the restricted cash balance
remains subject to the approval of Macquarie Bank Limited, under the terms of the facility agreement governing the loan and hedge obligations.

At 31 December 2012 Avocet had US$8.0 million of funds outside SMB, which was insufficient to continue corporate and exploration activities as currently planned, without some funds being transferred from SMB. The Company
will announce that the Ore Reserve at Inata has reduced to 0.92 million ounces of gold from the previous Ore Reserve of 1.85 million ounces.

The new Ore Reserve and the new Life of Mine Plan ("LoMP") no longer provide adequate coverage of SMB's current hedge position to the satisfaction of MBL. Avocet has therefore been in negotiations with MBL to restructure the hedge and debt positions to reflect this shorter mine life, however while negotiations are in progress, restrictions imposed by MBL on surplus SMB cash mean that Avocet is unable to access cash from SMB that it previously expected to be available for use elsewhere in the Group.

On 14 February 2013 the Company provided an update to the market regarding discussions with MBL with regard to the hedge agreements at Inata, and the rest
ricted cash at SMB.

Since this time, MBL and the Company have held a number of discussions regarding
options to ensure adequate liquidity for the Company and satisfactory adjustments to the hedge arrangements.

The directors have concluded that the combination of these circumstances represents a material uncertainty that may cast significant doubt upon the Company's ability to continue as a going concern and that, therefore, the possibility exists that the Company could be unable to continue to fund its
corporate and exploration activities as currently envisaged. Nevertheless, after
making enquiries and considering the uncertainties described above, the directors have a reasonable expectation that the Company's financing plans will yield sufficient funding to remain a going concern. For these reasons, they continue to adopt the going concern basis of accounting in preparing the annual financial statements.

As negotiations evolve with financiers and advisers, the Company will make announcements as appropriate in due course.

[lukeisbackontrack] 07/3/2013 14:32

Nice entry point here IMO

[lukeisbackontrack] 06/3/2013 13:59

Whats on Thursday?